Aviation Industry on Brink: Workers Protest 20% Revenue Cut

Despite the federal government’s recent decision to reduce the revenue deductions from aviation agencies from 50 percent to 20 percent, aviation workers have rejected the move, insisting that no deductions should be made at all.

In a memo dated August 14, aviation union workers called on the federal government to discontinue the 50 percent revenue deduction imposed on aviation agencies.

The workers, who argue that these agencies are “cost recovery, and not profit-making organisations,” had threatened to embark on a one-day strike on Wednesday, stating that the agencies “cannot survive on half revenue.”

In response to the unions’ demands, President Bola Tinubu approved a reduction in the deductions from 50 percent to 20 percent. However, the aviation workers have remained unsatisfied, stressing that any deductions would still be detrimental to the industry.

Speaking with TheCable on Wednesday, Olayinka Abioye, General Secretary of the National Association of Aircraft Pilots and Engineers (NAAPE), stated that the unions had not yet received an official circular implementing the president’s directive.

Abioye revealed that a letter had been sent to the Minister of Aviation and Aerospace Development, Festus Keyamo, urging intervention before the end of the month.

“It is a fact that aviation trade unions issued a statement that by Wednesday today, we shall embark on a rally across Nigerian airports, but intelligence reports suggested it wouldn’t be a wise thing to do,” Abioye said.

“So we commuted that rally into a letter to the Honorable Minister, giving the Minister until the end of this month to intervene on this subject matter by getting the federal government involved to reverse the reduction of 50% imposed on all aviation agencies for very critical reasons.”

Abioye emphasized that aviation agencies are not profit-making companies but are instead focused on critical safety and security issues.

“They are cost recovery agencies. So we are not making a profit from the businesses we do, from the services we render. And that 50% has created so much trauma for the workers,” he explained.

He further argued that even the 20 percent deduction should not exist, describing the aviation industry as being “in comatose.” Abioye stated,

“There is no need, there is absolutely no reason for any kobo being removed from our finances, not to talk of 20 percent or 10 percent or 5 percent. The international statute is very clear on this. Aviation money should rotate and should be ploughed back into aviation.”

Abioye highlighted the critical need for funds in the aviation sector, stating that all the agencies require consistent funding for infrastructure maintenance and training.

“One penny of that money should not be taken by the federal government, because the government has too much money, excesses, and that is why you see extravagances all over the place. In the midst of all this money flowing around, Nigerians are suffering. These are purely the issues,” he added.

While acknowledging the minister’s appeal for workers to remain calm, Abioye concluded that workers are “looking forward to the end of this month and expecting that something positive will come up.”